We just received our copies of the filing documents and the Means test shows a disposable of about $290 per month or $17,400 over the 5 year period. This is based on the 6 month look back period of our income. Back in March, 2012, my wife took a lower position at her company with planned incremental decreases in pay. The first step down occurred in May, then the next in August, with the final reduction beginning in November. Overall her gross is being reduced by approximately $7,000.
As of today, the 6 month look back would only account for part of the scheduled reductions so our DMI is actually showing higher today than it will in say 5 months when the full effect of the reductions has been in play for 6 months. Given this, our attorney wants to file next week with the Presumption of Abuse and if necessary, explain that our average gross will continue to go down until it plateaus in May of 2013. We do have a signed Memo from her HR department detailing the change of position and the scheduled reductions. Basically, if you took a snapshot today of our income (and assuming no changes over the next 6 months) it will look the same today as it will down the road and our DMI will change to approximately $67 per month or about $4k over the month period. This puts us under the Presumption of Abuse threshold.
Given this, do you think that the Trustee will buy into this with the proof that the current income level is lower than it was and will continue at this level (lowering the 6 month average with each new pay period) and allow the Chapter 7? I would prefer to wait several months until after we receive our Tax Refund (and dispose of it) to file but he feels we should file in early December. We generally receive a decent refund, over $5000 per year. We use this money to pay auto insurance and other debts in lump sums.
As of today, the 6 month look back would only account for part of the scheduled reductions so our DMI is actually showing higher today than it will in say 5 months when the full effect of the reductions has been in play for 6 months. Given this, our attorney wants to file next week with the Presumption of Abuse and if necessary, explain that our average gross will continue to go down until it plateaus in May of 2013. We do have a signed Memo from her HR department detailing the change of position and the scheduled reductions. Basically, if you took a snapshot today of our income (and assuming no changes over the next 6 months) it will look the same today as it will down the road and our DMI will change to approximately $67 per month or about $4k over the month period. This puts us under the Presumption of Abuse threshold.
Given this, do you think that the Trustee will buy into this with the proof that the current income level is lower than it was and will continue at this level (lowering the 6 month average with each new pay period) and allow the Chapter 7? I would prefer to wait several months until after we receive our Tax Refund (and dispose of it) to file but he feels we should file in early December. We generally receive a decent refund, over $5000 per year. We use this money to pay auto insurance and other debts in lump sums.
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